Latest news with #ZTSystems
CNA
28-05-2025
- Business
- CNA
AMD buys Enosemi to boost co-packaged optics offerings
Chipmaker Advanced Micro Devices said on Wednesday it has acquired Enosemi, a builder of photonic integrated circuits, to expand its co-packaged optics offerings across AI systems. AMD did not disclose the financial details of the deal. Silicon Valley entrepreneurs and investors have pinned their hopes on the optics technology, which they believe will be central to building ever-larger computers for AI systems. Co-packaged optics, as the emerging technology is called, uses laser light to send information on fiber optic cables between chips, resulting in faster and more energy-efficient connections compared to traditional copper cables. AMD acquired server maker ZT Systems for $4.9 billion earlier this year to expand its portfolio of artificial intelligence chips and hardware, and better compete with AI giant Nvidia.
Reuters
28-05-2025
- Business
- Reuters
AMD buys Enosemi to boost co-packaged optics offerings
May 28 (Reuters) - Chipmaker Advanced Micro Devices (AMD.O), opens new tab said on Wednesday it has acquired Enosemi, a builder of photonic integrated circuits, to expand its co-packaged optics offerings across AI systems. AMD did not disclose the financial details of the deal. Silicon Valley entrepreneurs and investors have pinned their hopes on the optics technology, which they believe will be central to building ever-larger computers for AI systems. Co-packaged optics, as the emerging technology is called, uses laser light to send information on fiber optic cables between chips, resulting in faster and more energy-efficient connections compared to traditional copper cables. AMD acquired server maker ZT Systems for $4.9 billion earlier this year to expand its portfolio of artificial intelligence chips and hardware, and better compete with AI giant Nvidia (NVDA.O), opens new tab.
Globe and Mail
24-05-2025
- Business
- Globe and Mail
Most Analysts Are Bullish About a Rebound in Advanced Micro Devices Stock (AMD)
Advanced Micro Devices (AMD) stock has risen more than 28% over the past month, driven by easing trade tensions and better-than-expected results for the first quarter of Fiscal 2025. However, the stock is still down 8.4% year-to-date due to macro challenges, chip restrictions, and tariff uncertainties. Nevertheless, most Wall Street analysts are bullish about the upside potential in AMD stock, driven by AI (artificial intelligence)-related tailwinds, growing data center revenues, strategic partnerships, and the ZT Systems deal. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter This week, Advanced Micro Devices was in the news as it announced an agreement to sell ZT Systems' server manufacturing business to Sanmina (SANM), an integrated manufacturing solutions company. Meanwhile, AMD will retain ZT Systems' rack-scale AI solutions design business, in line with the company's AI growth strategy. Analysts Are Optimistic About AMD Stock's Upside Potential Following the news related to the sale of ZT Systems' infrastructure manufacturing business, Stifel analyst Ruben Roy reiterated a Buy rating on AMD stock with a price target of $132, suggesting an upside potential of over 19% from Thursday's closing. Roy thinks that this deal aligns with AMD's stated goal of technological expansion with emphasis on AI infrastructure. In fact, it reflects his original thesis that AMD's ZT acquisition was motivated by a shift towards rack-scale AI solutions. The 5-star analyst believes that AMD's ability to leverage about 1,200 engineers of ZT with rack-scale experience will be a crucial driver in its long-term AI roadmap. Interestingly, commenting on investors' concerns that AMD is lagging rivals like Nvidia (NVDA) in the AI race, Evercore analyst Mark Lipacis noted that management contends that while the GPU business market share ramp is viewed as slow by investors, it is following a similar long-term strategy that was successful in winning share in the server CPU market. Management added that the company is seeing success along a similar time frame in the GPU business as well. They pointed out that first gen product is introductory (MI300 in GPUs, Naples in server CPUs), second gen (MI325, Rome) involves a large customer, third gen (MI350, Milan) has larger customers onboarding, and continued market share gains follow in 4th gen (Genoa, MI400) and beyond. The 5-star analyst observed that AMD believes that while investors are highly focused on its progress in the data center GPU space, they are perhaps not fully appreciating the company's solid momentum and profitability in all markets (GPU, CPU, and Client). Based on his confidence in the semiconductor company, Lipacis reiterated a Buy rating on the stock with a price target of $126, reflecting an upside potential of about 14%. Is AMD a Buy or Sell Now? Despite the ongoing concerns over chip restrictions, uncertainties around trade policies, and macro challenges, several analysts remain bullish on AMD's growth potential due to its innovation, dominance in the CPU market, and growing GPU business. With 22 Buys and nine Holds, Wall Street has a Moderate Buy consensus rating on Advanced Micro Devices stock. The average AMD stock price target of $126.55 implies 14.3% upside potential. See more AMD analyst ratings
Globe and Mail
22-05-2025
- Business
- Globe and Mail
‘Time to Ride the AMD AI Wave,' Top Analysts Bullish after ZT Systems Sale
Advanced Micro Devices (AMD) received Buy ratings from Top Wall Street analysts following its $3 billion sale of ZT Systems' manufacturing business to Sanmina (SANM). The move aligns with AMD's long-term AI strategy as it retained ZT's engineering team. Analysts see this as a key step in AMD's push toward rack-scale AI solutions, making AMD stronger against Nvidia (NVDA). Confident Investing Starts Here: Analysts Back AMD's AI Strategy with Buy Ratings Stifel analyst Ruben Roy is bullish on AMD, reaffirming a Buy rating with a $132 price target (16.3% upside). He sees AMD's sale of ZT Systems as part of its strategy to expand AI infrastructure. Roy believes that ZT's 1,200 engineers should help speed up AI system development. Also, he noted that AMD's deal with Sanmina gives it a trusted manufacturing partner for cloud and AI projects, helping AMD stay flexible. Similarly, Wells Fargo (WFC) analyst Aaron Rakers maintained a Buy rating with a $120 price target (5.7% upside), citing long-term AI potential. The deal bolsters AMD's rack-scale AI strategy, especially with Instinct MI400-series GPUs coming in 2026. Also, he noted that AMD may use Sanmina as a key manufacturing partner to speed up AI system deployment for cloud customers. Citi Analyst Sees 12% Downside in AMD Stock At the same time, a Top-rated Citi (C) analyst, Christopher Danely, assigned a Hold rating to AMD stock, with a price target of $100. The key factor influencing Danely's rating is AMD's ZT Systems sale. Originally, AMD acquired ZT Systems for $4.6 billion. However, AMD sold the manufacturing segment to Sanmina for $3 billion. The sale price was much below Citi's expected $5 billion. Nevertheless, Danely expects the deal will help AMD scale in the data center GPU market. Is AMD a Buy or Sell Now? Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 22 Buys and nine Holds assigned in the last three months. At $126.55, the average AMD price target implies an 11.49% upside potential. See more AMD analyst ratings Disclaimer & Disclosure Report an Issue
Globe and Mail
20-05-2025
- Business
- Globe and Mail
Is AMD Stock a Buy, Sell, or Hold on ZT Systems Sale?
Advanced Micro Devices (AMD) opened in the red this morning after announcing plans of selling ZT Systems to San Jose-headquartered Sanmina (SANM) for $3.0 billion in cash and stock. However, it will retain the data center infrastructure firm's engineering team, comprising a total of 1,200 experts, for about $1.6 billion, a press release confirmed on Tuesday. AMD shares have rallied in recent weeks, partly due to the 90-day trade truce between the U.S. and China. At the time of writing, they're up more than 30% versus their April low. What ZT Divestiture Means for AMD Stock The planned divestiture of ZT Systems that is expected to close in the final quarter of 2025 could help the chipmaker streamline its focus on AI computing and cloud-based solutions. Unloading the data center infrastructure manufacturing company brings $2.25 billion in cash that strengthens AMD's balance sheet as well. Additionally, retaining ZT's engineering team will help AMD 'compete better with Nvidia in the data center GPU market via additional system experience and faster hyperscale deployment times,' as per Christopher Danely – a senior Citi analyst. AMD Shares May Still Find It Hard to Fly Despite seeing the chipmaker's divestiture of ZT as a positive, Citi maintained its 'neutral' rating on AMD shares today. Danely's $100 price target indicates potential downside of more than 10% from here. Investors should note that AMD stands to get hurt as President Donald Trump continues to make it harder for U.S. chipmakers to be in business with China moving forward. On the most recent earnings call, the company's management told investors that export controls could result in up to $1.5 billion in lost revenue this year. Plus, Intel's price cuts could threaten the chipmaker's gross margin as well in 2025, which may also make it even more difficult for AMD stock to extend gains. Should You Invest in AMD at Current Levels? Despite aforementioned challenges, other Wall Street analysts remain constructive on AMD stock for 2025. The consensus rating on Advanced Micro Devices currently sits at ' Strong Buy ' with the mean target of nearly $129 indicating potential upside of as much as 13% from current levels.
